(Reuters) - Johnson & Johnson's diabetes care unit, which makes insulin pumps, said on Thursday it would shut its business in United States and Canada amid increased competition and after failing to find a buyer.

Animas Corp has selected rival Medtronic Plc as its partner for the device and nearly 90,000 patients using its pumps will be offered the option to transfer to pumps made by Medtronic.

J&J has been reviewing strategic options, including a potential sale of its diabetes care division, which includes LifeScan Inc, Animas Corp and Calibra Medical Inc.

The division reported sales of $421 million in the second quarter, down 10.6 percent from a year earlier.

Analysts said Animas' exit from the insulin pump business is not surprising. "Animas has not been investing in its product pipeline or aggressively adding patients to its platform over the last year," William Blair analyst Margaret Kaczor said in a client note.

Animas would continue to sell its insulin pumps - Animas Vibe and OneTouch Ping - outside of the United States and Canada, J&J spokeswoman Bridget Doherty told Reuters on Thursday.